BEC 162015

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An acceptable or beneficial proposal is one for which the -------------------------- is equal to or greater than the firm's predetermined minimum acceptable rate of return on the investment.

An acceptable or beneficial proposal is one for which the Internal rate of return is equal to or greater than the firm's predetermined minimum acceptable rate of return on the investment.

-------------------------------- is the method used to determine the rate of return that causes the present value of the net cash flows to equal the initial investment.

Internal rate of return (IRR) is the method used to determine the rate of return that causes the present value of the net cash flows to equal the initial investment.

A --------------------------- is the minimum acceptable rate of return on an investment

A discount rate is the minimum acceptable rate of return on an investment

The ------------------------- is used to calculate the present value of future cash flows.

The discount rate is used to calculate the present value of future cash flows.

------------------------- are used in net present value and internal rate of return calculations.

Discount rates are used in net present value and internal rate of return calculations.

The -------------------------- is the weighted-average cost, in percentage form, that a firm will incur in raising new funds to finance future investment.

The cost of capital is the weighted-average cost, in percentage form, that a firm will incur in raising new funds to finance future investment.

-------------------------are historical costs that are irrelevant in capital budgeting decisions because they will not be altered by the decision.

Sunk costs are historical costs that are irrelevant in capital budgeting decisions because they will not be altered by the decision.

What are sunk cost?

Sunk costs are historical costs that are irrelevant in capital budgeting decisions because they will not be altered by the decision.

what does this describe?

Each asset is offset with a financing instrument of the same approximate maturity or duration.

the hedging approach to financing

Describe the hedging approach to financing

Each asset is offset with a financing instrument of the same approximate maturity or duration.

A ------------------- is an option (or right) that is transferable to purchase a specified number of shares of stock at a stated price within a stated time period.

A call option is an option (or right) that is transferable to purchase a specified number of shares of stock at a stated price within a stated time period.

a -------------- is an investment used in an attempt to reduce the risk of adverse price fluctuations in an asset.

a hedge is an investment used in an attempt to reduce the risk of adverse price fluctuations in an asset.

A ---------- is a transaction that reduces the risk in an investment.

A hedge is a transaction that reduces the risk in an investment.

A -------------- insulates a coporation from exposure to foreign exchange or interest rate fluctuations.

A hedge insulates a corporation from exposure to foreign exchange or interest rate fluctuations.

A ------------ is a transferrable option or offer to deliver a stated quantity of either equity securities or a commodity at a specified exercise or strike price on or before a specified expiration date.

A put is a transferrable option or offer to deliver a stated quantity of either equity securities or a commodity at a specified exercise or strike price on or before a specified expiration date.

------------------ is current assets minus current liabilities.

Working capital is current assets minus current liabilities.

The comparable uncontrolled price, the resale price, and the ------------------------ to set transfer prices are all methods allowed by the IRS in an attempt to control transfer pricing manipulation.

The comparable uncontrolled price, the resale price, and the cost-plus approach to set transfer prices are all methods allowed by the IRS in an attempt to control transfer pricing manipulation.

The comparable uncontrolled price, the ---------------------, and the cost-plus approach to set transfer prices are all methods allowed by the IRS in an attempt to control transfer pricing manipulation.

The comparable uncontrolled price, the resale price, and the cost-plus approach to set transfer prices are all methods allowed by the IRS in an attempt to control transfer pricing manipulation.

The ------------------------------, the resale price, and the cost-plus approach to set transfer prices are all methods allowed by the IRS in an attempt to control transfer pricing manipulation.

The comparable uncontrolled price, the resale price, and the cost-plus approach to set transfer prices are all methods allowed by the IRS in an attempt to control transfer pricing manipulation.